An Islamic school's plans to create a master planned hub in Brisbane's south west has sparked fiery debate, including accusations of 'racial undertones', between the city's leaders.

The Australian International Islamic College (AIIC) at Durack has submitted a development application to Brisbane City Council and proposed a child care centre, mosque, multi-storey residential building, shops, medical centre and aged care facility be built on the school's site at 724 Blunder Road.

During question time at Tuesday's council meeting Councillor Steve Griffiths (Moorooka) asked Lord Mayor Graham Quirk if he supported the proposed development.